Fixed Tax Rate

1. Fixed Tax Rate can be applied for employees whose Monthly Tax Deduction (MTD) is based on a Fixed Percentage.

2. Fixed Tax Rate can be applied for employees under the following categories:

   1. Returning Expert Program (REP)

   2. Knowledge Worker

   3. Resident (Non-Citizen) holding C-Suite position

   4. Any employee whose MTD is based on Fixed Tax Rate (e.g. 15%).

How to Configure Fixed Tax Rate in the System

1. Navigate to the Company/Branch tab.

2. Select the relevant Company/Branch.

3. Click on Payroll Settings.

4. Enable the Fixed Tax Rate option and enter the rate. Ex: 15%

5. The system computes Fixed Tax:

   1. Calculate the Assessable Income.

   2. Apply the Fixed Tax Rate.

   3. Deduct the Accumulated Tax Paid (MTD) from previous months.

   4. Finally, multiply with remaining months.

6. Example:

   1. Pay Period: February

      Marital Status: Single

      Basic Salary: RM 6,500*12 = RM 78,000

      Deductions

      EPF Contribution: RM 715

      EPF Contribution Estimate: RM 2,570

      PERKESO (SOCSO +EIS): RM 41.65

      Individual Tax Relief: RM 9,000

      Accumulated MTD of Previous Month: RM 811.98

      
      

      1. Net Assessable Income:

         RM 78,000 - (RM 715*2) - RM 2,570 -  (RM 41.65*2) - RM 9,000 = RM 64,916.70

      2. Personal Income Tax Bracket

         RM 64,916.70 * 15% = RM 9,737.51

      3. Income Tax Payable:

         (RM 9,737.52 - RM 811.98) * 11 = RM 811.41

         

      4. You may view the Monthly Tax Report (CP 39) (Reports -> Government Reports -> Monthly Reports -> CP39